Household debt rises to post credit crunch high

6th January 2017

Household debt rises to post credit crunch high

Household debt has risen to its highest level since just after the financial crash of 2008, official figures show.

Bank of England data shows personal debt grew 10.8% in the year to 30 November to £192.2bn in the UK – the highest level since December 2008. Debt charity Step Change is calling on the government to adopt a scheme that gives problem debtors 12 months’ breathing space to get back on track. The government says it is reviewing whether to bring in such a scheme. But that decision is now 12 months overdue, and the charity estimates that a further one million people fell into problem debt during this period.

Bank of England statistics show that personal debt, including credit cards and bank loans but not including mortgages or student loans, has been growing at a yearly rate of 10% for the past six months.

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